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Time to reverse a 6 figure mess. Owing up and taking responsibility.
Harrysplan
Posts: 31 Forumite
Hi,
I posted on the DFW board last week - https://forums.moneysavingexpert.com/discussion/6532304/last-chance-saloon-before-insolvency#latest
We are in our early 40's with £102K of unsecured debt. We knew it was bad but it took me writing it all down and adding it up before we realised the extent of the mess that we had created. The support that I have had from people here as been great. I have gone from lying awake worrying about how we are going to avoid bankruptcy, to realising that we can actually sort this out.
Here is my SOA so that everyone has the full picture.
I posted on the DFW board last week - https://forums.moneysavingexpert.com/discussion/6532304/last-chance-saloon-before-insolvency#latest
We are in our early 40's with £102K of unsecured debt. We knew it was bad but it took me writing it all down and adding it up before we realised the extent of the mess that we had created. The support that I have had from people here as been great. I have gone from lying awake worrying about how we are going to avoid bankruptcy, to realising that we can actually sort this out.
Here is my SOA so that everyone has the full picture.
Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1[b]
Monthly Income Details[/b]
Monthly income after tax................ 4180
Partners monthly income after tax....... 1550
Benefits................................ 549
Other income............................ 750[b]
Total monthly income.................... 7029[/b][b]
Monthly Expense Details[/b]
Mortgage................................ 624
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 142
Electricity............................. 94
Gas..................................... 45
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 0
Mobile phone............................ 46
TV Licence.............................. 13.25
Satellite/Cable TV...................... 49
Internet Services....................... 26
Groceries etc. ......................... 450
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 40
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 18
Pet insurance/vet bills................. 52
Buildings insurance..................... 21
Contents insurance...................... 18
Life assurance ......................... 33.29
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100
Haircuts................................ 30
Entertainment........................... 150
Holiday................................. 0
Emergency fund.......................... 0[b]
Total monthly expenses.................. 1986.54[/b]
[b]
Assets[/b]
Cash.................................... 2700
House value (Gross)..................... 315000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0[b]
Total Assets............................ 317700[/b]
[b]
Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 74501....(624)......4.11[b]
Total secured & HP debts...... 74501.....-.........- [/b]
[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
barclaycard....................12800.....259.......6.9
barclaycard....................5400......111.......6.9
MBNA...........................8752......287.......26
Natwest........................9875......99........0
Loan from mum..................4500......90........0
Consolidation loan ............14000.....361.......18.9
Consolidation loan 2...........8000......132.......8.8
Loan 3.........................8500......210.......19.5
Barclaycard 3..................8500......248.......24.2
HSBC CC........................2874......86........16.9
Creation CC....................4500......101.......24
JD williams....................1800......85........49
Elfin market...................1900......111.......38.8
ZOPA...........................1200......75........29.9
Mum loan 2.....................10000.....0.........0[b]
Total unsecured debts..........102601....2255......- [/b]
[b]
Monthly Budget Summary[/b]
Total monthly income.................... 7,029
Expenses (including HP & secured debts). 1,986.54
Available for debt repayments........... 5,042.46
Monthly UNsecured debt repayments....... 2,255[b]
Amount left after debt repayments....... 2,787.46[/b]
[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 317,700
Total HP & Secured debt................. -74,501
Total Unsecured debt.................... -102,601[b]
Net Assets.............................. 140,598[/b]
This is our 'new' SOA. You can see our old SOA at the start of my thread on the DFW wannabe board. it's clear to see why we had gotten into such a mess!
I want to use this diary to keep myself accountable, but also as an outlet to offload and vent.
This is our 'new' SOA. You can see our old SOA at the start of my thread on the DFW wannabe board. it's clear to see why we had gotten into such a mess!
I want to use this diary to keep myself accountable, but also as an outlet to offload and vent.
3
Comments
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Good to get it all down on paper. I have.my own diary. I dont actually think anyone reads it but its somehow pleasing to get your own thoughts out there and structure some sort of plan down in words.
If you need advice theres plenty amongst us who will have first hamd experience of your particular dilemma.
A diary is good for the soul.
Good luck in your questDebt free 2024 (excluding mortgage)
Mortgage free....work in progress £83466.46
Emergency fund £1000...work in progress £1200 -
Writing everything down is the best way to start your debt free journey.
Next you need a plan of action as to how you will tackle your debt. Which debts to pay off first, etc.
On the plus side you have a healthy budget surplus to play with which should see your debt total come down quite quickly.
Good luck. You have done the hard part and faced your totals.0 -
Just another one saying good luck and keep at it. There’s no better feeling than getting on top of your finances.250 bonus saver
400 regular saver
35 NS&I
165 credit union
Credit card 20000 -
Good call on starting a diary to get support from others monitoring spending. You have a huge surplus so you can absolutely sort this out without a debt solution. It will take some discipline not to fall back into bad habits but the soa is not cut to the bone.Do you pay insurances annually or monthly? Your buildings and contents looks high. We have just a basic buildings and contents policy. Buildings and contents combined with extra cover for an expensive watch and all risks cover for 2 E bikes cost us £133 for the year this year. I did shop around and we don’t bother with accidental damage or all the extras they often pile on.You could pay off that JD Williams in month 1, Elfin Market in month 2 and Zopa in month 3. That is all the expensive ones gone then. Close the accounts down so you are not tempted to spend on them again. If you can get any of the interest charging cards balance transferred to 0% that will save you interest. Do an MSE eligibility check as that is a soft search which does not show on your credit record. Things will look very different in a year if you manage to keep on track.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
The 365 Day 1p Challenge 2025 #1 £667.95/£72.60
Save £12k in 2025 #1 £12000/£40000 -
Firstly welcome to the boardHarrysplan said:Hi,
I posted on the DFW board last week - https://forums.moneysavingexpert.com/discussion/6532304/last-chance-saloon-before-insolvency#latest
We are in our early 40's with £102K of unsecured debt. We knew it was bad but it took me writing it all down and adding it up before we realised the extent of the mess that we had created. The support that I have had from people here as been great. I have gone from lying awake worrying about how we are going to avoid bankruptcy, to realising that we can actually sort this out.
Here is my SOA so that everyone has the full picture.Household Information[/b]Number of adults in household........... 2Number of children in household......... 2Number of cars owned.................... 1[b]Monthly Income Details[/b]Monthly income after tax................ 4180Partners monthly income after tax....... 1550Benefits................................ 549Other income............................ 750[b]Total monthly income.................... 7029[/b][b]Monthly Expense Details[/b]Mortgage................................ 624Secured/HP loan repayments.............. 0Rent.................................... 0Management charge (leasehold property).. 0Council tax............................. 142Electricity............................. 94Gas..................................... 45Oil..................................... 0Water rates............................. 35Telephone (land line)................... 0Mobile phone............................ 46TV Licence.............................. 13.25Satellite/Cable TV...................... 49Internet Services....................... 26Groceries etc. ......................... 450Clothing................................ 0Petrol/diesel........................... 0Road tax................................ 0Car Insurance........................... 0Car maintenance (including MOT)......... 0Car parking............................. 0Other travel............................ 0Childcare/nursery....................... 40Other child related expenses............ 0Medical (prescriptions, dentist etc).... 18Pet insurance/vet bills................. 52Buildings insurance..................... 21Contents insurance...................... 18Life assurance ......................... 33.29Other insurance......................... 0Presents (birthday, christmas etc)...... 100Haircuts................................ 30Entertainment........................... 150Holiday................................. 0Emergency fund.......................... 0[b]Total monthly expenses.................. 1986.54[/b][b]Assets[/b]Cash.................................... 2700House value (Gross)..................... 315000Shares and bonds........................ 0Car(s).................................. 0Other assets............................ 0[b]Total Assets............................ 317700[/b][b]Secured & HP Debts[/b]Description....................Debt......Monthly...APRMortgage...................... 74501....(624)......4.11[b]Total secured & HP debts...... 74501.....-.........- [/b][b]Unsecured Debts[/b]Description....................Debt......Monthly...APRbarclaycard....................12800.....259.......6.9barclaycard....................5400......111.......6.9MBNA...........................8752......287.......26Natwest........................9875......99........0Loan from mum..................4500......90........0Consolidation loan ............14000.....361.......18.9Consolidation loan 2...........8000......132.......8.8Loan 3.........................8500......210.......19.5Barclaycard 3..................8500......248.......24.2HSBC CC........................2874......86........16.9Creation CC....................4500......101.......24JD williams....................1800......85........49Elfin market...................1900......111.......38.8ZOPA...........................1200......75........29.9Mum loan 2.....................10000.....0.........0[b]Total unsecured debts..........102601....2255......- [/b][b]Monthly Budget Summary[/b]Total monthly income.................... 7,029Expenses (including HP & secured debts). 1,986.54Available for debt repayments........... 5,042.46Monthly UNsecured debt repayments....... 2,255[b]Amount left after debt repayments....... 2,787.46[/b][b]Personal Balance Sheet Summary[/b]Total assets (things you own)........... 317,700Total HP & Secured debt................. -74,501Total Unsecured debt.................... -102,601[b]Net Assets.............................. 140,598[/b]
This is our 'new' SOA. You can see our old SOA at the start of my thread on the DFW wannabe board. it's clear to see why we had gotten into such a mess!
I want to use this diary to keep myself accountable, but also as an outlet to offload and vent.
it’s a big are but so worth it
You should be able to make some big dents in those debts with such a healthy budget
However make sure some of your figures are not too tight and restrictive; food may be a bit tight?I would pay off JD Williams 49% 😱 with some of the cash; then redirect that payment on to Elfin and throw as much as you can at that one; then on to the next highest etc
Also set some money aside each month for emergency fund so you’re not tempted to reach for the cards if something goes wrong
Personally I’d also set some aside for holiday; not sure of your children’s ages but if they’re little ones it’s important to make the most of your time with them while they are young; I’m not talking about anything extravagant but say £100 per month for a camping trip for example?You should be able to find reduce house and contents insurance as they do seem very highMFW 2025 #50: £711.20/£600007/03/25: Mortgage: £67,000.00
18/01/25: Mortgage: £68,500.14
27/12/24: Mortgage: £69,278.38
27/12/24: Debt: £0 🥳😁
27/12/24: Savings: £12,000
07/03/25: Savings: £16,5001 -
No car? No public transport? No taxis? Or did I miss that somewhere??
Well done for getting started. It's a big chunk to deal with but if you break it into tiny bits it's possible to get it all done.I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe and Old Style Money Saving boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung
⭐️🏅😇0 -
It’s on another thread, car is through salary sacrifice and mot etc is includedBrie said:No car? No public transport? No taxis? Or did I miss that somewhere??
Well done for getting started. It's a big chunk to deal with but if you break it into tiny bits it's possible to get it all done.
However the other thread had fuel in the soa and there’s nothing for it in this one?MFW 2025 #50: £711.20/£600007/03/25: Mortgage: £67,000.00
18/01/25: Mortgage: £68,500.14
27/12/24: Mortgage: £69,278.38
27/12/24: Debt: £0 🥳😁
27/12/24: Savings: £12,000
07/03/25: Savings: £16,5000 -
Hello welcome to the diaries and good on you for starting the process. Grocery challenge and paying off debts 1% at a time challenge are good places to have a read! Look forward to following your progress!Jan 18 Joint debts 35,213 - March 25 13.9 k
Mortgage Jan 18- 77224 March 25- just over 65.5k
Debts in my name only £52130
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